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McDermott and BHGE sign MoU with Western Gas regarding Australian gas project

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LNG Industry,

McDermott International Inc. and Baker Hughes, a GE company (BHGE) have signed a memorandum of understanding (MoU) with Western Gas Corp. Pty Ltd to be the exclusive development partners for the Equus Gas Project in Western Australia.

The Equus gas fields are located approximately 200 km north-west of Onslow, Western Australia, and have water depths ranging from 3280 ft to 3967 ft. It is anticipated that there will be a downstream nearshore LNG facility and pipeline connection to the Western Australian gas market.

McDermott claims that the Equus gas project is a development-ready asset, with an extensive history of exploration and appraisal activities and development studies.

According to the statement, both companies were also awarded a contract to support the planning phases of the project. As part of the initial contract, McDermott claims that, alongside BHGE, it will work with Western Gas to advance the pre front-end engineering and design (pre-FEED) and FEED to final investment decision (FID). io Oil & Gas Consulting – a joint venture (JV) between McDermott and BHGE – will provide the pre-FEED support to deliver a technically robust and cost-efficient development plan. In the statement, McDermott claims that its portion of the contract is classified as sizable.

Pre-FEED work will begin straight away, with completion targeted for 2Q19. Following completion of pre-FEED, McDermott and BHGE will continue with FEED work.

Once a positive FID has been taken, it is expected that McDermott and BHGE will carry out the engineering, procurement, construction, installation and commissioning (EPCIC) of the entire field development scope under a separate contract. The scope will cover reservoir evaluation, drilling and completions, subsea, production facilities, an export pipeline, an LNG facility and a domestic gas connection facility.

Ian Prescott, McDermott's Senior Vice President for Asia Pacific, said: “This project underscores the value of McDermott's vertically-integrated capabilities and our collaboration with BHGE, who will leverage their broad portfolio to support the project.

“In close collaboration with BHGE, we are taking a holistic approach to field development from drilling, subsea, production facilities and an export pipeline to an LNG facility and onshore gas connection. By more closely connecting each stage of the project, we aim to drive significant efficiencies and cost savings for Western Gas through the full life of the field.

Andrew Leibovitch, executive director for Western Gas, added: “It was important to us to engage with partners that could offer a full field development and execution solution that would help deliver an efficient development plan, enhance project economics and reduce time to first gas.

“BHGE and McDermott bring a wealth of global expertise, products and services to help drive efficiencies across the life of the field.”

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Australia LNG news Offshore LNG news Natural gas news